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04.22.14

Netflix to Raise New Members’ Fee

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Netflix announced Monday that it planned to increase its monthly price for new subscribers after its customer base grew more than anticipated, along with its net profit. Some time in the next three months, Netflix plans to raise the cost of a subscription by $1 or $2 a month. It may slow some of its customer growth, which grew by 4 million in the first quarter to 48 million worldwide. But it's an increase that people will likely tolerate. “I don’t think too many consumers are going to be put off by spending a dollar or two a month for the quality, the quantity of content that Netflix has,” said Mark Mahaney of RBC Capital Markets.